In most advanced economies,central banks target __________ to conduct monetary policy.

Question

Quizplus · Accepted Answer

Central banks use interest rates to conduct monetary policy. By increasing or decreasing interest rates, central banks can influence borrowing and lending behavior, which in turn affects the economy's overall level of spending and inflation. The other options - tax rates, money supply, government debt, and exchange rates - are not typically targeted by central banks for monetary policy purposes.

In Most Advanced Economies,central Banks Target __________ to Conduct Monetary